The top countries where it is easiest to do business
is New Zealand followed by Singapore, Denmark and Hong Kong. The countries
mentioned are as per the list of World Bank ‘ease of doing business’. India
rose from the 131st position in 2016, to 100th position
in 2017 and recently India jumped to 77th position in 2018. As per
the recent report of World Bank, India improved on 6 out of 10 parameters which
included:
· Starting
a business.
· Construction
permits.
· Getting
electricity.
· Tax
payment.
· Enforcing
contracts.
· Resolving
insolvency.
Though India tops the list among South Asian countries
in doing ease of business, the elephant in the room is
China, who has jumped to the get the business from EU countries like Italy,
Romania and also countries like Chile and Mexico. India cannot match the progress
unless it starts to expedite the economic and other financial reforms. As the
‘Make in India’ has also not yielded any major foreign investment which shows
an image that India is still an unattractive destination for doing business.
There are some flaws which have been noted in the
world bank’s ranking, they lack to provide a complete picture of the investment
climate persisting in a country. Moreover, when it comes to India, the
collection of data is based only from 2 metro cities i.e. Mumbai and Delhi.
Hence when it comes to starting a business in India it
may be easy on paper, but the ground reality is just the opposite of it. In order to attract some serious foreign
investment and prove its ‘ease of doing business’, India should look at the
problems at more granular level and try finding the solutions to the same at
the earliest as it is better late than never.
Thank You
Regards
Author - Gaurav Sureka
Kautilya
IBS Mumbai
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